Biotron Share Price Shoots 26% Higher on Preliminary COVID-19 Results
The hunt for a COVID-19 vaccine is ramping up.
We learnt yesterday that the government has spent $1.7 billion on potential treatments. Hedging their bets on some $84 million worth of doses that will be ready for free rollouts by 2021.
Whether or not these vaccines will work though, is unclear.
It is simply the government’s way of trying to get ahead of the masses. A gamble that could pay off in spades or prove to be a massive waste of money…
Either way though, it highlights the incredible opportunity surrounding biotech stocks right now. Particularly those that are looking for or serving up potential COVID-19 solutions.
Which is precisely what Biotron Ltd [ASX:BIT] has done today.
A small-cap stock that is up 26.32% at time of writing, the BIT share price moved up on the announcement. Surging on the back of some fascinating findings regarding compounds that could fight against the ‘rona.
See Biotron is tackling the coronavirus from a different angle.
Rather than trying to cure the virus, they are looking for ways to destroy it. Using a unique set of compounds that have shown some promise in cell protection and killing the virus itself.
After testing some 47 compounds, 15 showed potential. Meeting the key endpoints set out by the trial and providing the groundwork for further testing.
As Biotron’s Managing Director Michelle Miller commented:
‘The results to date are encouraging. There is a need for new ways to treat this disease, and Biotron believes that these results open up a promising new therapeutic pathway.
‘The results underscore the versatility of Biotron’s approach to designing and developing drugs to target serious virus infections.’
However, these are still very early stages for Biotron.
Any chances of producing a successful solution for the COVID-19 virus will require much further testing. Meaning that this small biotech still has a long road ahead of itself.
Nevertheless, it is fantastic to see such promising potential.
Major breakthroughs needed
For investors, this development is certainly welcome news.
If Biotron sticks with it, they could be onto a real winner. A strategy that may help them address many diseases and viruses into the future, not just COVID-19.
Again though, we will only find out in due time.
It does, however, serve as a reminder as to the potential that can be found on the market right now.
Biotron showcases the kind of small-cap breakthrough potential that is out there. Going toe-to-toe with far larger and better capitalised companies.
But, all it takes is one successful trial or one major discovery to strike it rich. The kind of breakthrough that isn’t just exclusive to biotech stocks.
For instance, take our report on three explosive tech plays; a deeper look at what may be the best hidden gems on the ASX right now.
For Money Morning